Published on 3/10/2021 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $4.42 million callable contingent income securities on indexes
By Taylor Fox
New York, March 10 – Morgan Stanley Finance LLC sold $4.42 million of callable contingent income securities due March 3, 2026 tied to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10.55% per year if each index closes at or above its coupon threshold level, 75% of its initial level, on the related determination date.
The notes will be callable at par on any quarterly observation date after six months.
The payout at maturity will be par plus the coupon unless any index finishes below its 60% downside threshold, in which case investors will be fully exposed to the performance of the least performing index.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Callable contingent income securities
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average
|
| Amount: | $4,416,000
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| Maturity: | March 3, 2026
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| Coupon: | 10.55% per year, payable each quarter if each index closes at or above its coupon threshold level on the related determination date
|
| Price: | Par
|
| Call option: | At par on any quarterly observation date after six months
|
| Payout at maturity: | Par plus coupon unless any index finishes below its downside threshold, in which case investors will be fully exposed to the performance of the least performing index
|
| Initial levels: | 2,201.501 for Russell, 30,932.37 for Dow and 12,909.44 for Nasdaq
|
| Coupon threshold levels: | 1,650.788 for Russell, 23,199.278 for Dow and 9,682.08 for Nasdaq, or 75% of initial levels
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| Downside threshold levels: | 1,320.631 for Russell, 18,559.422 for Dow and 7,745.664 for Nasdaq, or 60% of initial levels
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| Pricing date: | Feb. 26
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| Settlement date: | March 3
|
| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.75%
|
| Cusip: | 61771E4K1
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